We investigate an approach to improving statistical text classification by combining machine learners with an ontology-based identification of domain-specific topic categories. We apply this approach to ad hoc disclosures by public companies. This form of obligatory publicity concerns all information that might affect the stock price; relevant topic categories are governed by stringent regulations. Our goal is to classify disclosures according to their effect on stock prices (negative, neutral, positive). In the study reported here, we combine natural language parsing with (...) a formal background ontology to recognize disclosures concerning particular topics from a prescribed list. The semantic analysis identifies some of these topics with reasonable accuracy. We then demonstrate that machine learners benefit from the additional ontology-based information when predicting the cumulative abnormal return attributed to the disclosure at hand. (shrink)

first-order HMM, the current tag t0 is predicted based on the previous tag t−1 (and the current word).1 The back- We present a new part-of-speech tagger that ward interaction between t0 and the next tag t+1 shows demonstrates the following ideas: (i) explicit up implicitly later, when t+1 is generated in turn. While unidirectional models are therefore able to capture both use of both preceding and following tag con-.